No new Suncorp policies in two Qld towns

Queensland's biggest insurer has stopped issuing new policies in two towns that repeatedly flood, urging government to do more mitigation works.

Suncorp will not issue new policies in Emerald and Roma, the company's personal insurance CEO, Mark Milliner, says.

Suncorp has resisted limiting insurance to high-risk towns, but assessors and repairers have now visited some Roma homes for the third time in as many years, he says.

"We now feel that we have little choice but to proceed down this path unless clear decisions are made to build or implement improved mitigation to protect the residents of these towns," Mr Milliner said.

"We can continue to rebuild our customers' homes. However, it is not fair for them have to risk and then rebuild their lives every storm season."

There are reports that existing Suncorp customers face 10-fold hikes in their premiums.

Central Highlands Regional Council Mayor Peter Maguire says the decision is unfair because parts of Emerald are at low risk of flooding.

Of the town's 7000 homes, 1000 were flooded last year. In 2008 the figure was less than 1000.